A contract is an agreement between parties, enforceable at law. The provisions of the Indian Contract Act, 1872 govern all contracts in India, including insurance contracts.
Non-disclosure of facts material to the assessment of the risk, providing misleading information, fraud or non-co-operation by the insured will nullify the cover under the policy issued
As per IRDAI guidelines, the insurer has to process the proposal within 15 days time.
Cover Notes - a cover note is issued to confirm protection under the policy. It gives description of cover. Validity of cover note is usually for a period of a fortnight and rarely up to 60 days
Cover notes - predominantly in marine and motor classes of business. Marine Cover Notes - issued when details required for the issue of policy such as name of the steamer, number of packages, or exact value etc. are not known.